Santa Monica-based Clearlake Capital Group and New York private equity firm Insight Partners have agreed to sell a jointly owned data business in an all-cash transaction for $1.83 billion.
Clearlake and Insight agreed to spin off Louisville-based Appriss Insights, a unit of Appriss Inc., to Atlanta-based data analytics and technology giant Equifax Inc.
The two private equity firms will retain parent Appriss, which in May made a tuck-on acquisition for its Appriss Health unit.
Appriss Insights provides data used in public and workplace safety, law enforcement, fraud detection and prevention and healthcare credentialing.
Parent company Appriss is a multibillion-dollar business owned by Clearlake and Insight Partners that licenses software on a subscription basis to public safety, risk and compliance, health information and insurance industries.
In the May deal, Clearlake and Insight Partners added PatientPing, a provider of data and software solutions focused on patients with complex needs, and senior care, to Appriss Health.
The transaction valued the combined Appriss Health and PatientPing business at more than $1.5 billion. Appriss Health provides cloud-based care coordination software and analytics solutions focused on behavioral health and substance use disorders.
“The sale of Appriss Insights is a validation of Appriss's original mission of delivering critical, proprietary data and analytics to help customers make better decisions,” said James Pade, partner and managing director at Clearlake.
“With this divestiture, Appriss will continue to invest in its health care and retail platforms, and Clearlake looks forward to helping Appriss grow its leadership position across these key verticals,” he added.
Appriss Insights is expected to generate about $150 million of revenue in 2021, up 30% over last year. The transaction is expected to be “strongly accretive” to Equifax’s adjusted earnings per share estimates in 2022, Mark Begor, chief executive of Equifax, said in a statement.
In April 2019, Clearlake said it made a “significant new equity investment” in Appriss to support the company’s “rapid growth and expansion into new markets.”
With the investment, Clearlake became an equal partner in Appriss alongside management and Insight Partners, which invested in Appriss in 2014. The deal to sell Appriss Insights is expected to close before year-end.